What is the public policy exception to the enforcement of an arbitration agreement?
The public policy exception to the enforcement of an arbitration agreement in Delaware is a legal principle that allows a court to refuse to enforce an arbitration agreement if the agreement violates the public policy of the state. This exception is designed to protect the citizens of Delaware from agreements that are unfair or unethical. The public policy exception is based on the idea that the government has an obligation to protect its citizens from harm, and to uphold and promote its laws and regulations. In Delaware, the public policy exception has been applied to a variety of arbitration agreements. For example, a court may refuse to enforce an arbitration agreement that would prevent a party from seeking legal remedies for injuries resulting from a product or service. Additionally, a court may not enforce an arbitration agreement that would prevent a party from seeking compensation for lost earnings or wages due to discrimination. The public policy exception is an important principle of arbitration law in Delaware, as it provides a means for parties to challenge an agreement that is unfair or violates public policy. It is important for parties considering using an arbitration agreement in Delaware to understand this exception and determine whether an agreement should be rejected for its potential violation of public policy.
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